Britons agree property is overvalued.

Really2

LisbonLaura wrote: »

I don't quite follow, what is this 'it' ?

The "it" being the bail out.
Portugal may of avoided a bailout had it had control of it's own monetary policy.
So People in Portugal are likely to be paying higher tax's higher debt costs etc now.

So your "€" may not have been deflated on purpose but the Net effect to the country you reside and the people living in it is most probably going to be higher to your pocket (and everyone else in portugal) than if they could of devalued their currency.

LisbonLaura

iandury wrote: »

Try asking happy contented homeonwers the same question and you will probably find that 100% do not think that their property is over valued.

Of course if you ask bitter non homeowning under achievers who blame everyone but themselves then i am sure you will get another result

A word to the wise: Don't bother applying for sainthood this time around.

geneer

Really2 wrote: »

I can't see how rates are artificially low, they are what they are and very similar to almost every other western economy.

Also the rates are not mirrored by mortgage rates so I do not see how they are a prop to house prices.

Only a few got the +0.49 trackers etc. Most are paying not far of the same when the base rate was 5.5% especially those that have fixed over the last 2-3 years.

So base rate may have stopped some defaults but they are not the reason why the base rate is where it is Perhaps a symptom, not a cause.

http://news.sky.com/skynews/Home/Business/Buying-A-Property-Is-Almost-100-Pounds-A-Month-Cheaper-Than-Renting-One-Halifax-Figures-Suggest/Article/201104415977883?lpos=Business_First_Buisness_Article_Teaser_Region_3&lid=ARTICLE_15977883_Buying_A_Property_Is_Almost_100_Pounds_A_Month_Cheaper_Than_Renting_One%2C_Halifax_Figures_Suggest

Halifax said the costs of owning a home now accounted for 27% of people's take-home pay, down from 56% three years ago.

Game over.
Play again?

julieq

Record affordability now innit Geneer. Shame you missed the boat really

chucky

geneer wrote: »

http://news.sky.com/skynews/Home/Business/Buying-A-Property-Is-Almost-100-Pounds-A-Month-Cheaper-Than-Renting-One-Halifax-Figures-Suggest/Article/201104415977883?lpos=Business_First_Buisness_Article_Teaser_Region_3&lid=ARTICLE_15977883_Buying_A_Property_Is_Almost_100_Pounds_A_Month_Cheaper_Than_Renting_One%2C_Halifax_Figures_Suggest

Halifax said the costs of owning a home now accounted for 27% of people's take-home pay, down from 56% three years ago.

Game over.
Play again?

so now you're saying it was better to buy three years ago.

well done on shooting yourself in both feet. :T

Really2

geneer wrote: »

http://news.sky.com/skynews/Home/Business/Buying-A-Property-Is-Almost-100-Pounds-A-Month-Cheaper-Than-Renting-One-Halifax-Figures-Suggest/Article/201104415977883?lpos=Business_First_Buisness_Article_Teaser_Region_3&lid=ARTICLE_15977883_Buying_A_Property_Is_Almost_100_Pounds_A_Month_Cheaper_Than_Renting_One%2C_Halifax_Figures_Suggest



Game over.
Play again?

And the base rate fell 90%?
So mortgage costs fell 50% on a base rate fall of 90%

My comment still stands for many and just proves how the people on here portray a "artificially low" base rate does not mean mortgages follow directly.
:beer: for supporting my point.

Wookster

Really2 wrote: »

I can't see how rates are artificially low, they are what they are and very similar to almost every other western economy.

Base rate 0.5%
CPI 4%

Can you see the misfit?

Really2 wrote: »

Also the rates are not mirrored by mortgage rates so I do not see how they are a prop to house prices.

Mortgage rates are more based on Libor than the base rate but they are not completely unrelated.

blueboy43

Really2 wrote: »

I can't see how rates are artificially low, they are what they are and very similar to almost every other western economy.

Also the rates are not mirrored by mortgage rates so I do not see how they are a prop to house prices.

Only a few got the +0.49 trackers etc. Most are paying not far of the same when the base rate was 5.5% especially those that have fixed over the last 2-3 years.

So base rate may have stopped some defaults but they are not the reason why the base rate is where it is Perhaps a symptom, not a cause.

It would have to be something fairly major now to cause a next leg down IMHO.

Interest rates are artificially low in the sense that in normal times, they are supposed to target inflation.
They are currently this low (and in Europe / USA) to allow the banks to get back to solvency. We are hardly in normal times.

How anyone can say that current rates are not a prop to house prices somewhat beggars belief. Something like 70% of all mortgages are variable rate usually somewhere between 0.2 and 3.5% above base.

That is why there is so few forced sales and repos.

Really2

Wookster wrote: »

Base rate 0.5%
CPI 4%

Can you see the misfit?

Yes, The responsibility for promoting economical stability was missed out.

Really2

blueboy43 wrote: »

Interest rates are artificially low in the sense that in normal times, they are supposed to target inflation.
They are currently this low (and in Europe / USA) to allow the banks to get back to solvency. We are hardly in normal times.

How anyone can say that current rates are not a prop to house prices somewhat beggars belief. Something like 70% of all mortgages are variable rate usually somewhere between 0.2 and 3.5% above base.

That is why there is so few forced sales and repos.

So are we in normal times? is the BOE remit not also to target economic stability?

When the BOE dropped to 0.5% it was a covert sign for all to drop to trackers or as that only recently happed as people came off more expensive products?

Also are fixed rate remortgages now increasing off the posibillity of being a rate rise.

You can't say it was done to help owners. it has helped owners with a brain as a by product of a bust.

I am sure the BOE never wanted me to over pay £1000 a month back in 2008 when they started dropping the rate.

They wanted banks to function and business to carry on employing and surviving.

Housing is not targeted by the BOE, the low rate is a symptom of the economy not for saving home owners.

You have to be fairly mad to think the only reason BOE dropped rates was to stop a few more defaults!!! There were bigger fish to fry.